Bitcoin has become an object of sharp criticism once again. This time, George Soros, one of the most influential and richest investors, took a dig at the cryptocurrency. He had the audacity to call bitcoin and other virtual money typical financial bubbles.
Mr. Soros made such a bold statement during the World Economic Forum in Davos for the whole world to hear. “Bitcoin is not a currency because a currency is supposed to be a stable store of value and the currency that can fluctuate 25% in a day can’t be used for instance to pay wages because wages drop by 25% in a day,” the billionaire said. “It’s a speculation, based on a misunderstanding,” he added. If this idea is true, then national currencies of some countries can also be called financial bubbles. For example, currencies of some African states had experience of plunging by even more than 25% in a day. The Venezuelan bolivar, Russian ruble, and Ukrainian hryvnia also happened to depreciate rapidly, but still they maintained the status of national currencies.
However, Soros has a firm belief concerning this matter. He said that he never bought a single crypto coin and will never speculate futures on digital money. On the plus side, the investor’s comments helped bitcoin dominate the headlines once again after the recent fall in value and attractiveness. So, it is possible that bitcoin will grow more popular after this adverse publicity.
